The FTC has ended its legal challenge to Microsoft’s acquisition of Activision Blizzard, clearing the way for future Xbox and cross-platform game releases.
It’s official — the U.S. Federal Trade Commission (FTC) has finally dropped its long-running case against Microsoft’s $68.7 billion acquisition of Activision Blizzard, putting the last major legal hurdle behind the gaming industry’s biggest deal.
While most assumed this was a done deal back in October 2023 when Microsoft closed the purchase and rolled games like Call of Duty and Diablo 4 into Xbox Game Pass, the FTC continued to fight it behind the scenes. It had filed an appeal after a federal judge denied its request for an injunction back in July 2023.
But that appeal didn’t go anywhere. In early May 2025, a federal appeals court backed the original ruling, stating that the FTC had failed to show a “likelihood of success” on any of its arguments. In plain terms: there wasn’t enough evidence to prove that Microsoft would harm competition or restrict rivals from accessing hit franchises like Call of Duty.
Following that, on May 22, the FTC officially dropped the case, saying,
“The public interest is best served by dismissing the litigation in this case.”
Microsoft, for its part, has continued to support multiple platforms even after acquiring Activision Blizzard. Recent launches like Diablo 4 and Call of Duty: Black Ops 6 dropped day-one across PC, Xbox, and PlayStation, and even previously Xbox-only titles like Senua’s Saga: Hellblade 2 are now making their way to PS5 with extra features and performance boosts.
Reacting to the FTC’s decision, Microsoft Vice Chair and President Brad Smith called it a “victory for players across the country and for common sense in Washington DC.” The comment was reposted by Phil Spencer, Head of Microsoft Gaming, and Xbox President Sarah Bond, signaling a unified sigh of relief from Xbox leadership.
Among fans, reactions are mixed — some were surprised to hear the FTC case was still alive, while others say the final dismissal was always a matter of time. Either way, it’s now full steam ahead for Microsoft and Activision Blizzard to integrate and expand their vision for the future of gaming. Expect even more Game Pass content and blockbuster titles across multiple platforms in the months ahead.
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